LAGUNA BEACH : City Rejects Claims in January Landslide

Officials have rejected 10 claims totaling nearly $7 million filed against the city as a result of the January landslide in the Mystic Hills neighborhood.

City Atty. Philip Kohn said he can recall no similar disaster causing such a flurry of claims against the city.

“In terms of number of claims and dollars, it is certainly the most in at last 10 years and probably before that,” he said.

The landslide caused three homes to lurch from their foundations. One of them slid downhill and burst into flames.

In addition to claims from those three property owners, the city has received demands from area residents who say their property values have fallen because of the landslide.

The six-month deadline for filing claims has passed.

From the beginning, the disaster had all the markings of a complicated legal tangle. One attorney involved from the onset said then that the landslide had attracted “enough lawyers to usually kill any deal.”

But Kathy Jenson, the attorney handling the case for the city, said she was still surprised by the onslaught of claims. Lawsuits have also been filed, she said, but to date none involve the city. Some homeowners have taken legal action against each other and against soil experts who had previously examined the hillside, she said.

Among the reasons given for the claims against the city are assertions that the area had improper drainage and that the city did not act quickly enough to stabilize the area. The total dollar amount mentioned is $6,750,000, City Clerk Verna L. Rollinger said.

City Manager Kenneth C. Frank has said the city has no liability in the incident.

Shortly after the landslide, a consulting company hired by the city issued a report saying that the area was the site of “an ancient landslide” and that the recent collapse was precipitated by three weeks of intense rainfall.

A geotechnic report is being prepared for the city to describe the extent of the landslide and to suggest ways to repair the damage. Municipal Services Director Terry Brandt said the report should be complete by the end of the month.

In June, the City Council appropriated $32,000 for geotechnic work in the area. However, Brandt said, it is too early to tell what the city’s total costs for repairs will be.

Frank said the city is responsible only for steadying the land in the areas of sewer and storm drains and not for rebuilding private property.